Canadian Tire posted its second quarter results this week, beating analyst expectations. Revenue rose 2% to $3.4 billion from $3.3 billion last year. The DIY retailer’s shares rose from $2.46 per share to $2.81. April and May results did not help the quarter, mainly due to weather and the effect on seasonal products. However, Canadian Tire used analytics to diversify their product assortment and plan effective promotions.
The retailer also invested in its website and mined customer data and data insights to respond to activity based on facts rather than intuition. Using these analytics, they better planned for flyers, loyalty strategies and promotional events. Same-store sales were up 1.4%. They also drove their private label products, which now is responsible for 1/3 of the retailer’s revenue. Sales of private label merchandise grew by almost 8%. Private label brands for them include Mastercraft tools, Norma lights and Canvas home goods. These products are performing so well that the retailer is considering selling them outside of Canada.
Source: Calgary Herald